PBO APPRISES THE PUBLIC DEBT AND PRIVATIZATION COMMITTEE ON LOANS BORROWED BY NATIONAL GOVERNMENT
The Public Debt and Privatization Committee chaired by Hon. Abdi Shurie on Thursday met members of staff from the Parliamentary Budget Office (PBO). The PBO appeared before the Committee to take the Members through a Report on the analysis of loans contracted by the National Government during the period between 1st May 2022 and 31st August 2022.
While appraising the Committee, the team pointed out that a total of six new loans, totalling to Kshs.105.06B were contracted between the Government and bilateral, multilateral and commercial creditors. These loans were intended to finance initiatives under the Agricultural sector and Economic Empowerment through financing Micro, Small and Medium Enterprises (MSMEs).
The Committee was further informed that, out of the six loans contracted, only Kshs36.18B commercial loans had been partly disbursed by the time the Report was submitted to Parliament. As a result of this, there is the possibility of incurring further cost in commitment fees on non-disbursed loans.
Furthermore, it was noted that the low rate of loan disbursement risks slowing down project completion rates and stopping the implementation of the programs that the loans were sought for.
The Committee will invite stakeholders to enable it to gather more information on National Government borrowing and come up with a Report to be tabled in the House for debate.